FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brisbane Small Business Loans
Tell me more about Brisbane Small Business Loans
Brisbane unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
You can apply for the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan so you will be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, company remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been in operation for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A large business loan can be used for nearly all business use, including business renovations, to purchase new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, which could also include registration in the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than stating the security for a particular asset. The person who signs the ensure is personally liable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more we can offer an initial pre-approval in order to make the process. We may be able to do this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you are offered could be on different terms.
Application process
Do I qualify for funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and a dedicated business credit specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour – as long as you submit your request at standard business timings and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll offer an answer in just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The fastest way can be make sure you apply during normal company hours. You can also let us use the advanced bank verification system to check your bank’s information online. If you send us duplicates of your banking statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour if you apply in standard business times and you allow us to use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be capable of provide you with conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Certain offers have been approved within 24 hours.
The most efficient method can be ensure you apply during normal business hours. Also, let us use the advance bank verification link to verify your bank information online. If you decide to send us duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a specific amount we look at a variety of elements for determining how much we can lend you health of the company and the level of the repayments your business can support. The total amount of your loan will depend on the particular circumstances the company.
When you apply for a specific amount we look at a range of aspects to assess your well-being of the company and the level of repayments that your company can support. The total amount of your loan will be contingent on the particular circumstances the company.
Fees & repayments
How do you charge for a company loan?
When you make an application for business loans with us company loan, we will assess the risk assessment of your company and offer you with a tailored offer that includes the amount of the loan, the duration and interest rates. The company loan is an upfront-priced loan so you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the money will be used for in addition to the industry that the business operates in, the long the business has been in operation as well as whether the business has enough cash flow to cover the loan, and the overall health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely how much it is that you need to pay, and when, from the day you sign up. There’s no compounding interest and no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please speak to our friendly business credit professionals. The experts will provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow routine, we provide payments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner utilises the assets they have to get the funding. The asset can be a personal asset like the family home or a business asset such as a vehicle or piece or equipment.
The majority of lending institutions, including the major banks, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s the process of securing additional financing making use of the value of what you already own.
Should I need security to get an company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access but we do need a personal guarantee. If you adhere to the loan terms (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally, you are able to get an individual guarantee and security in the form the charge of assets.